If you are a homeowner at risk of losing your house, you need to look at what you can do to preserve your home and have an easier time paying it off. You could find yourself forced to sell your house at a loss in certain circumstances. However, you might be able to apply advance transactional strategies called Lease Options with our help, potentially enabling you to retain your house, or squeeze much of its equity, instead of losing it to the bank.
We’re going to explore this strategy, which will work in the current real estate market. This is just one option that has variations of its own and are worth noting as it could help you sell your house and maybe even get cash out of it or at least discourage you from coping with foreclosure.
Here’s how it works: You will lease your property to another person who will pay you at a later time, usually 3 to 5 years, for the right (or option) to purchase your property at a predefined price. Through this deposit, any unpaid delinquent payments and late fees owing to your lender should be taken care of. Your new occupant will make monthly payments (hereinafter called the “optionee” since he holds the “option” to purchase your house), which should cover your monthly mortgage payments. This rent should be greater than fair rents on the market, as you give this person the “option” to live in a house until they purchase it. The type of individual who agrees to be an optionee usually has less than ideal credit (sometimes depending on bad credit installment loans) but wants the chance to buy a home.
The optionee is entitled to execute his option to buy the property you leased before the expiration of the lease term. The real estate market should have increased the value of the home by the time the lease-option expired. The optioner will just walk away from the deal if the value of the home has not improved, and you, the optioner, can repeat the transaction with someone else. You’ve got the mortgage payments covered in the meantime, and then some. This strategy yields greater returns than a direct lease or rent.
When you’re ready to move forward with selling your house, we’re here to help. Contact us any time at (772) 732-2797